The Federal Ministry of Transportation has come under scrutiny after the Auditor-General’s annual report revealed that N1.66 billion was spent in 2021 without adhering to financial regulations or due process.
The report, titled Non-compliance and Internal Control Weakness in Ministries, Departments, and Agencies (MDAs), covers findings from January to December 2021. It outlined several anomalies, including unauthorized expenditures on salaries, social contributions, training programs, and unapproved travel costs.
Irregular Salaries and Social Contributions
A significant portion of the flagged expenses, N968 million for salaries and N1.089 billion for social contributions, was spent without the required documentation, violating the Financial Regulations 2009 (Paragraph 110) and Section 85(2) of the 1999 Constitution (as amended).
Despite repeated requests, the ministry failed to provide essential records such as nominal rolls, monthly payslips, and staff lists. The Auditor-General attributed the discrepancies to internal control weaknesses, suggesting potential payments to ghost workers and diversion of public funds.
The report has called on the ministry’s permanent secretary to justify these expenditures to the National Assembly or face sanctions for gross misconduct and ineffective fund management.
Unsupported Training Expenses
The report highlighted N93.5 million spent on training programs without appropriate supporting documentation, including attendance records, certificates, or reports. These payments, made between June and September 2021, contravened multiple financial regulations.
The ministry defended some payments as Duty Tour Allowance (DTA) and claimed consultants’ absence from the Government Integrated Financial Management Information System (GIFMIS) platform necessitated direct payments to staff. However, the Auditor-General insisted on recovering the funds unless satisfactory evidence is presented to the Public Accounts Committees of the National Assembly.
NEXIM Transfers Raise Red Flags
The report uncovered N400 million transferred to the Nigerian Export-Import Bank (NEXIM) under the ECOWAS Inter-States Road Transit (ISRT) Scheme without evidence of its implementation. Despite contributions totaling N400 million since 2015, there was no proof of the scheme’s existence or operation.
The Auditor-General has demanded the permanent secretary either account for the funds and show proof of the scheme’s activities or remit the amount to the Treasury.
Unapproved Foreign Travels
Another irregularity involved N68.59 million spent on overseas travels to countries such as Kenya, South Africa, Morocco, Greece, and France without requisite approvals. Additionally, three officials received contingency allowances totaling $3,000, which remains unaccounted for.
The Auditor-General directed the ministry to justify the expenses, retire the contingency funds, and provide evidence of approvals, failing which sanctions would apply.
Training Contracts Without Due Process
The report also flagged N11.1 million paid to the Nigerian Institute of Transport Technology (NITT) for training 78 participants without following procurement procedures. Of this amount, N7 million was paid without deductions for VAT, withholding tax, or stamp duty.
The Auditor-General recommended recovering and remitting the deducted funds to the Treasury while ensuring compliance with open competitive bidding in the future.
FG Reaffirms Support for Auditor-General’s Office
In response to these revelations, President Bola Tinubu reaffirmed his administration’s commitment to bolstering the independence and effectiveness of the Office of the Auditor-General. Speaking through the Secretary to the Government of the Federation, George Akume, during the unveiling of the Auditor-General’s Strategic Plan 2024-2028, the president emphasized the importance of transparency and accountability in public finances.
These findings have raised questions about accountability in the ministry and reinforced calls for stricter enforcement of financial regulations in public institutions.
